Will the Feds Stop Changing Things?

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​It is hard enough to keep track of changing rules and regulations without having the Feds change them retroactively.  Here’s a quick summary of three retroactive changes that came out at the very end of March.

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OK, so, we know the feds can't help themselves when it comes to changing things – but, could they please stop changing things retroactively?  Just this week, three different announcements were made that revise rules – some back to 2016! They even made a retroactive change of a retroactive change they made earlier in the year!  It is hard enough to keep track of regulations and to keep employers and individuals informed.  But when the Feds make retroactive changes, they can cause more headaches than it is worth.

Here’s a quick overview of the three most recent retroactive changes.

• HSA Contributions affected for 2018
  Early in March, it was announced that the family maximum contribution level into an HSA account would not be $6900 after all.  Because of a new calculation method for inflation used to set these levels, the corrected level would be $6850.  Now, in late April they come back and say, “Oops, this will cause a hardship, so we are walking this back to $6900.”  Seriously?  Yes, seriously.  All those changes you made to payroll, new hire memos, etc., well, now you get to change them all back. 
• Small Employer Health Credit affected for 2017 and beyond
  Starting in 2014, an employer could only qualify for this tax credit if they provided medical coverage through their Exchange’s SHOP program.  There was relief provided in 2014, 2015 and 2016 for employers who were located in counties where SHOP plans were not available.  There was no relief provided in 2017 – but wait … now there is.  The Feds have finally put this relief into permanent status, plus they included the 2017 calendar year in retroactively.
• Individual Penalty Exclusions affected for 2016 and beyond
  Yes, the individual penalty is going away as of calendar year 2019; however, the Feds are providing an opportunity for individuals to take advantage of 4 additional waivers, all the way back to 2016.  Of course, individuals will need to refile their taxes for 2016 and/or 2017, but depending on the penalty they had to pay, it may certainly be worth it.  The 4 new “hardship exemptions” are:
  • If the person lives in an area where there are no marketplace plans
  • If the person lives in an area where there is just one insurer selling marketplace plans
  • If the person can’t find an affordable marketplace plan that doesn’t cover abortion
  • If the person experiences “personal circumstances” that make it difficult for them to buy a marketplace plan, including not being able to find a plan in their area that gives them access to specialty care that they need

I guess Will Rogers knew what he was talking about. “The only difference between death and taxes is that death doesn’t get worse every time Congress meets.” I must accept that the Feds won’t stop changing things. Especially because it is apparent that they have no idea as to the chaos that retroactive changes bring about.  Breathing deeply, counting to 10, and looping the Serenity Prayer in my head helps.  Hopefully my blog updates are another way for you to keep your sanity in these ever-changing times.